Travel

Key requirements

International passenger transport and related insurance can be zero-rated; local accommodation and inbound tours are ordinarily standard-rated, with overseas accommodation and outbound tours following the stated rules. Arranging services contracted to a local customer are standard-rated from January 2023. Overseas contracts can qualify only with the specified direct-benefit conditions, replacing earlier transport/accommodation arranging tests. A genuine compensatory cancellation charge may involve no supply, while an administrative service assisting cancellation is taxable. Identify whether the agency acts as principal or agent and separate the product, arrangement and cancellation items before applying rates.